Inventory Optimization Diagnostic

Inventory is key to cash flow and an indication of health in any complex supply chain. Our Inventory Optimization Diagnostic analyzes inventory inefficiencies and creates optimized strategies to improve cash flow and customer satisfaction. Partner with Catalant’s inventory Experts who have been subject matter Experts at leading firms and inventory leaders in organizations to:

Balance inventory and prevent over or under stocking

Improve demand responsiveness

Enhance cash flow management

Approach

A Comprehensive Inventory Optimization Solution Designed for Impact

01

Assess the current state of inventory process and performance

Use available data, conduct analysis, and determine the current state and health of inventory.

02

Identify issues that need optimization

Pinpoint specific areas like bottlenecks, waste, or processes where inventory management can be improved to enhance efficiency and reduce costs.

03

Develop targeted solutions for each issue identified

Collaborate with stakeholders to assess each potential issue and develop and validate strategies to address each in a way that will optimize inventory.

04

Design and execute an implementation roadmap

Provide an action plan and roadmap to address each opportunity and establish a realistic value capture timeline.

Winning Together

Inventory Optimization in Action

Heavy Industrials ETO
More Success Stories

Problem

The client faced substantial challenges with forecast accuracy and data integrity, leading to increased inventory buildup, missed deliveries, and lost customer opportunities. Following an end-to-end process diagnostic, the primary vulnerability was identified in the upstream sales forecast, which revealed critical gaps in data quality, tools, and process capability.

Action

A comprehensive demand forecasting model revamp was undertaken to:

 

  • Align the organization and secure resource commitments
  • Redesign and unify the sales forecasting and demand planning processes
  • Define value drivers and essential functionality to select a new demand planning tool

Results

A newly implemented sales forecasting process was piloted in two business units, accompanied by investment approval for a new digital tool and integrator. This initiative resulted in: 

 

  • 21% reduction in excess inventory
  • 3% improvement in on-time delivery
  • 10% increased visibility with full process and tool implementation

Industrial Equipment Company

Consolidated data from 30+ ERP systems, implemented S&OP and inventory playbook, improved availability, and reduced inventory by $85MM (12%)

Large Distributor

Created roadmap for new system and process architecture for next gen inventory management practices to enhance visibility and tracking, implemented quick wins that landed $20M in reduction (5%) in 3 months

Major Automotive Equipment Manufacturer

Set up inventory control tower, reset safety stock, reduced inventory by $120MM (15%).

Featured Inventory Optimization Experts

Featured Inventory Optimization Experts

Mike L.

15+ years of experience in SIOP, inventory, and ERP

Former Senior Expert at McKinsey offering a novel approach to inventory intelligence. Specialized in executive coaching, SAP and ERP, supply chain, manufacturing and procurement.

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Borko B.

25 years of experience in supply chain, operations, and strategy

Specialized in inventory optimization, lean manufacturing, S&OP, demand planning and IIOT/Factory 4.0 across industries like transportation, manufacturing, industrials, and CPG.

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Lane A.

30+ years of experience in supply chain planning and analytics

Former consultant at Accenture, EY, and Deloitte, focused on inventory optimization, forecasting, constraint-based supply planning, and analytics.

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